Excerpt from the Case Study
	Income Statements						Balance Sheets
		2006	2007	2008				2006	2007	2008
	Net Sales	$ 16,200	$ 17,450	$ 16,500			Current Assets
	Cost of Goods Sold	$ 10,445	$ 11,956	$ 11,950			Cash	$ 234	$ 122	$ 61
	Gross Profit	$ 5,755	$ 5,494	$ 4,550			Temporary Investments	$ 1,034	$ 488	$ 99
	Selling and Administrative Cost	$ 3,054	$ 3,130	$ 3,379			Accounts Receivables, Net	$ 3,250	$ 3,450	$ 2,854
	Depreciation	$ 396	$ 720	$ 756			Raw Material Inventory	$ 1,025	$ 1,350	$ 1,395
	Operating Income	$ 2,305	$ 1,644	$ 415			WIP Inventory	$ 200	$ 138	$ 42
	Other Income						Finished Goods Inventory	$ 2,030	$ 1,700	$ 1,200
	Interest Income	$ 21	$ 10	$ 2			Prepaid Expenses	$ 182	$ 143	$ 188
	Other Expenses						Total Current Assets	$ 7,955	$ 7,391	$ 5,839
	Interest Expense	$ 246	$ 291	$ 407			Fixed Assets
	Income Before Taxes	$ 2,080	$ 1,363	$ 10			Land, Plant & Equipment	$ 4,893	$ 7,076	$ 9,590
	Income Taxes	$ 624	$ 409	$ 3			Less: Accumulated Depreciation	$ 1,380	$ 2,100	$ 2,856
	Net Income	$ 1,456	$ 954	$ 7			Net Land, Plant and Equip	$ 3,513	$ 4,976	$ 6,734
							Total Assets	$ 11,468	$ 12,367	$ 12,573
							Current Liabilities
							Accounts Payable	534	543	500
							Income Taxes Payable	54	35	23
							Current Portion of Long term Debt	1000	1145	1340
							Total Current Liabilities	1588	1723	1863
							Long Term Liabilities	3190	3500	4059
							Shareholder's Equity
							Common Shares	1350	1350	1350
							Retained Earnings	5340	5794	5301
							Total Shareholder's Equity	6690	7144	6651
							Total Liabilities &Shareholder's equity	11468	12367	12573
Questions to Answer in the Project
Instructions: Read the Case Study and Answer the following Questions.
	Please do Questions 1,2,and 3 in this excel file itself (you may insert rows as needed)
	Please do Question 4th in a word document and submit as a PDF file
Question 1	(3.5 points)
	Financial Analysis Table
		2006	2007	2008
	Liquidity Ratios
	Current Ratio
	Current Assets	$ 7,955.00	$ 7,391.00	$ 5,839.00
	Current Liabilities	$ 1,588.00	$ 1,723.00	$ 1,863.00
	Current Ratio	5.01	4.29	3.13
	Quick Ratio
	Current Assets - Inventory - Prepaid Expenses
	Current Assets	$7,955	$7,391	$5,839
	Less: Raw Material Inventory	$1,025	$1,350	$1,395
	Less: WIP Inventory	$200	$138	$42
	Less: Finished Goods Inventory	$2,030	$1,700	$1,200
	Less: Prepaid Expenses	$182	$143	$188
	Current Assets - Inventory - Prepaid Expenses (a)	$4,518	$4,060	$3,014
	Current Liabilities (b)	$1,588	$1,723	$1,863
	Quick Ratio (a/b)	2.85	2.36	1.62
	Asset Management
	Inventory Turnover Ratio
	Cost of Goods Sold (a)	$10,445	$11,956	$11,950
	Opening Inventory (assuming same as close for 2006)	$3,255	$3,255	$3,188
	Closing Inventory	$3,255	$3,188	$2,637
	Average Inventory (b)	$3,255	$3,221.50	$2,912.50
	Inventory Turnover Ratio (a/b)	3.21	3.71	4.1
	Receivables Turnover Ratio
	Net Sales (a)	$16,200	$17,450	$16,500
	Opening Receivables (assuming same as close for 2006)	$3,250	$3,250	$3,450
	Closing Receivables	$3,250	$3,450	$2,854
	Average Receivables (b)	$3,250	$3,350	$3,152
	Receivables Turnover Ratio (a/b)	4.98	5.21	5.23
	Days Sales Outstanding
	Closing Receivables (a)	$3,250	$3,450	$2,854
	Net Sales (b)	$16,200	$17,450	$16,500
	Days (a/b*365)	74 Days	73 Days	64 Days
	Fixed Asset Turnover
	Net Sales (a)	$16,200	$17,450	$16,500
	Opening Fixed Assets (assuming same as close for 2006)	$3,513	$3,513	$4,976
	Closing Fixed Assets	$3,513	$4,976	$6,734
	Average Fixed Assets (b)	$3,513	$4,244.50	$5,855
	Inventory Turnover Ratio (a/b)	4.61	4.11	2.82
	Total Assets Turnover
	Net Sales (a)	$16,200	$17,450	$16,500
	Opening assets (assuming same as close for 2006)	$11,468	$11,468	$12,367
	Closing Assets	$11,468	$12,367	$12,573
	Average Total Assets (b)	$11,468	$11,917.50	$12,470
	Total Assets Turnover (a/b)	1.41	1.46	1.32
	Debt Management Ratios
	Times Interest Earned Ratio
	Debt to Capital Ratio
	Profitability Ratios
	Operating Margin
	Gross Profit Margin
	Net Profit Margin
	ROA
	ROE
Question 2	(0.75 points)
	Calculate ROE for all the three years using DuPont Analysis.
	(Show Calculations)
	2006
	2007
	2008